WASECA COUNTY BOARD OF COMMISSIONERS--AUGUST 20, 2013
The Waseca County Board of Commissioners met in regular session on Tuesday, August 20, 2013, in the Commissioner’s Room, 300 North State Street, Waseca, Minnesota. Members present were Chair Daniel D. Kuhns, Richard Androli, Mike Hintz, Blair Nelson and Jim Peterson.
Others present were Laura Elvebak, County Administrator; Tammy Wynkoop, Chief Deputy Auditor-Treasurer; Intern Samantha Barthels; Sheriff Brad Milbrath; Nathan Richman, Highway Engineer; Merilee Reck, Human Services Director; Joan Scholljegerdes, Child Support Officer; Russ Guse, Ditch Inspector; Rollie Norton; Ron Selvik; Harry Popiel; Doug Prescher; Jenny Arndt; Ben Byron; Mark Leiferman, Planning & Zoning Director; Miles Trump, Waseca County News Reporter; Gary Anderson, ANCOM; and Bruce Kimmel, Ehlers.
Chair Kuhns called the meeting to order at 9:30 a.m. Roll call was taken and the Pledge of Allegiance was recited.
There were no public comments.
Androli moved and Hintz seconded to approve the Agenda as presented. Motion carried unanimously.
There was no correspondence. The bills were found to be in order. There was no business brought forward during Department Head Time.
Hintz moved, Nelson seconded and the motion carried unanimously to approve the Consent Agenda as follows:
a. Approval of Bills b. Approval of Conditional offer of Employment – Michael Agnor (Solid Waste & Recycling Technician) c. Approval of Conditional Offer of Employment – Matthew Woodham (Solid Waste & Recycling Technician) d. Approval of Conditional Offer of Employment – Ivagene Kobylinski (Solid Waste & Recycling Specialist) e. Approval of Conditional Offer of Employment – Andrew Graupmann (Engineering Technician) f. Approval of Conditional Offer of Employment – Cody Dobberstein (Dispatcher Part- Time) g. Approval of Grant Agreement with the Department of Human Services for LexisNexis h. Approval of Grant Agreement with the Department of natural Resources for OHV Safety Enforcement Grant
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i. Approval of Waseca County Collaborative for Families Agreement j. Acceptance of Resignation Effective September 27, 2013 – Nancy Hofmeister (Public Health Nurse) k. Acceptance of Veterans Services/Emergency Management Monthly Report l. Acceptance of Human Services Monthly Report
Hintz moved and Nelson seconded to approve the minutes for July 2, 2013 Regular County Board Meeting; July 2, 2013 County Board Work Session; August 6, 2013 Regular County Board Meeting; August 6, 2013 County Board Work Session. The motion carried unanimously.
Sheriff Milbrath gave an update regarding application for grant for Project Lifesaver. The grant was approved for equipment and training.
Jenny Arndt and Ben Byron expressed their thanks to Sheriff Milbrath for his hard work and the Commissioners for their of support Project Lifesaver. Ms. Arndt distributed some informational literature about Autism Spectrum Disorder and Project Lifesaver.
Harry Popiel, Veteran’s Memorial Committee, gave an update regarding the progress of the Veteran’s Memorial and presented a drawing of a proposed plan for the Waseca County Veteran’s Memorial.
Rollie Norton, on behalf of the Blooming Grove - Rice Lake Ditch Group, requested a letter of support from the Commissioners to help acquire a permit to do cleanout maintenance on their private ditch. Hintz moved to draft a letter of support, Nelson second and the motion was carried unanimously.
Merilee Reck introduced Child Support Officer Joan Scholljegerdes who gave a presentation regarding Child Support Awareness Month.
Nathan Richman, Highway Engineer, presented bids for Project #81-1354 Box Culvert Replacement County Road 54. Upon a motion by Androli and second by Peterson, the project was awarded to the lowest bidder, Borneke Construction of Janesville, MN, in the amount of $81,843.25. Motion carried unanimously.
A request has been received to do a temporary road closure and detour of Old Highway 14 for the Waseca Marching Classic on September 21st. Peterson moved and Androli to allow the closure and detour. After discussion, the motion was withdrawn.
Administrator Laura Elvebak presented a request to begin recruitment for a public health nurse due to the resignation that was approved on the consent agenda. Peterson moved and Nelson second to proceed with recruitment until filled. Motion carried 3-2 by the following roll call Peterson-Yes, Androli-No, Hintz-Yes, Nelson-Yes, Kuhns-No.
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Sheriff Milbrath presented a request to purchase ARMER 800 MHz radio equipment. Total project cost is $1,969,533.02. Sheriff Milbrath has secured grant dollars to assist with the purchase in the amount of $354,858. Also, approximately $175,000 in costs will be reimbursed back to the county over time from other cities and agencies for the cost of their equipment. This equipment will be used by all police, fire, ambulance, and emergency services and is necessary for compatibility with agencies throughout the state. Androli moved to proceed with the purchase, second by Hintz. Motion carried unanimously.
Bruce Kimmel, Ehlers, presented the bond documents for purchase of the radio equipment. Bids came in better than projected and Waseca County received a AA- rating with stable outlook.
Commissioner Hintz introduced the following resolution and moved its adoption, which motion was seconded by Commissioner Androli:
RESOLUTION 2013- 28 AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $2,145,000 GENERAL OBLIGATION CAPITAL NOTES, SERIES 2013A
BE IT RESOLVED by the Board of County Commissioners (the Board) of Waseca County, Minnesota (the Issuer), as follows:
Section 1. Authorization and Sale.
1.01. Authorization. The Board hereby authorizes the issuance and sale of $2,145,000 General Obligation Capital Notes, Series 2013A (the Obligations) of the Issuer to finance a portion or all of the costs of acquiring items of capital equipment for public safety purposes (the Project), pursuant to Minnesota Statutes, Section 373.01, Subdivision 3 and Chapter 475. Said items of capital equipment have a useful life not less than the term of the Obligations.
1.02. Sale. Pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), the requirements as to public sale do not apply to the issuance of the Obligations. Pursuant to the Terms of Proposal and the Preliminary Official Statement prepared on behalf of the Issuer by Ehlers & Associates, Inc., proposals for the purchase of the Obligations were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of Piper Jaffray & Co., in Leawood, Kansas, (the Purchaser), to purchase $2,145,000 principal amount of Obligations at a price of $2,235,560.58 plus accrued interest on all Obligations to the day of delivery and payment, on the further terms and conditions hereinafter set forth.
1.03. Award. The sale of the Obligations is hereby awarded to the Purchaser, and the Chair and County Auditor-Treasurer are hereby authorized and directed to execute a contract on behalf of the Issuer for the sale of the Obligations in accordance with the terms of the proposal. The good faith deposit of the Purchaser, if any, shall be retained by the Issuer until the Obligations have been delivered, and shall be deducted from the purchase price paid at settlement.
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Section 2. Obligation Terms; Registration; Execution and Delivery.
2.01. Issuance of Obligations. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Obligations having been done, now existing, having happened and having been performed, it is now necessary for the Board to establish the form and terms of the Obligations, to provide security therefor and to issue the Obligations forthwith.
2.02. Maturities; Interest Rates; Denominations and Payment. The Obligations shall be originally dated as of the date of issuance thereof, shall be in denominations of $5,000 or anyintegral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from date of issue until paid at the annual rates set forth opposite such years and amounts, as follows (subject to adjustment in accordance with the terms of proposals):
Year Amount Interest Rate
2016 $240,000 3.000% 2017 250,000 3.000 2018 255,000 3.000 2019 265,000 3.000 2020 270,000 3.000 2021 280,000 3.000 2022 290,000 2.500 2023 295,000 2.750
The Obligations shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Obligation at the principal office of the Registrar described herein, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein, provided that, so long as the Obligations are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. Upon the initial delivery of the Obligations pursuant to Section 2.07, and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of authentication shall be noted on each Obligation so delivered, exchanged or transferred.
2.03. Dates and Interest Payment Dates. Interest on the Obligations shall be payable on each February 1 and August 1, commencing August 1, 2014, to the owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months.
2.04. Redemption. Obligations maturing in 2022 and later years shall be subject to redemption and prepayment at the option of the , in whole or in part, in such order as the shall determine and within a maturity by lot as selected by the Registrar in multiples of $5,000, on February 1, 2021, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption, without premium. The County Auditor-Treasurer shall cause notice of the call for redemption thereof to be published as required by law and, at least thirty (30) days prior to the designated redemption date, shall cause notice of the call for redemption to be mailed, by first class
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mail, to the registered owners of any Obligations to be redeemed at their addresses as they appear on the bond register described in Section 2.06 hereof but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Obligation not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Obligations or portions of Obligations so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the shall default in the payment of the redemption price) such Obligations or portions of Obligations shall cease to bear interest. Upon partial redemption of any Obligation, a new Obligation or Obligations will be delivered to the registered owner without charge, representing the remaining principal amount outstanding.
2.05. Appointment of Initial Registrar. The Issuer hereby appoints Bond Trust Services Corporation in Roseville, Minnesota, as the initial bond registrar, transfer agent and paying agent (the Registrar) for the Obligations. The Chair is authorized to execute and deliver, on behalf of the Issuer, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The Issuer agrees to pay the reasonable and customary charges of the Registrar. The Issuer reserves the right to remove the Registrar, effective upon not fewer than thirty days’ written notice and upon the appointment and acceptance of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Obligations in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar.
2.06. Registration. The effect of registration and the rights and duties of the Issuer and the Registrar with respect thereto shall be as follows:
(a) Register. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Obligations and the registration of transfers and exchanges of Obligations entitled to be registered, transferred or exchanged. The term Holder as used herein shall mean the person (whether a natural person, corporation, association, partnership, trust, governmental unit or other legal entity) in whose name an Obligation is registered in the bond register.
(b) Transfer of Obligations. Upon surrender for transfer of any Obligation duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Obligations of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date.
(c) Exchange of Obligations. Whenever any Obligations are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Obligations of a like aggregate principal amount and maturity, as requested by the registered owner or the owner’s attorney in writing.
(d) Cancellation. All Obligations surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the Issuer.
(e) Improper or Unauthorized Transfer. When any Obligation is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that
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the endorsement on such Obligation or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The Issuer and the Registrar may treat the person in whose name any Obligation is at any time registered in the bond register as the absolute owner of the Obligation, whether the Obligation shall be overdue or not, for the purpose of receiving payment of or on account of, the principal of and interest on the Obligation and for all other purposes; and all payments made to any registered owner or upon the owner’s order shall be valid and effectual to satisfy and discharge the liability upon Obligation to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or exchange of Obligations (except for an exchange upon a partial redemption of an Obligation), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Obligations. In case any Obligation shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Obligation of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Obligation or in lieu of and in substitution for any Obligation destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of an Obligation destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Obligation was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the Issuer and the Registrar shall be named as obligees. All Obligations so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the Issuer. If the mutilated, destroyed, stolen or lost Obligation has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Obligation prior to payment.
(i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Obligations, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended.
(j) Valid Obligations. All Obligations issued upon any transfer or exchange of Obligations shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Resolution as the Obligations surrendered upon such transfer or exchange.
2.07. Execution, Authentication and Delivery. The Obligations shall be prepared under the direction of the County Auditor-Treasurer and shall be executed on behalf of the Issuer by the signatures of the Chair and County Auditor-Treasurer, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Obligations shall cease to be such officer before the delivery of any Obligation, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Obligation shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Obligation has been duly executed
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by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Obligations need not be signed by the same representative. The executed certificate of authentication on each Obligation shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Obligations have been prepared, executed and authenticated, the County Auditor-Treasurer shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price.
2.08. Securities Depository. The following provisions shall apply, unless otherwise designated by the Purchaser: (a) For purposes of this section the following terms shall have the following meanings:
“Beneficial Owner” shall mean, whenever used with respect to an Obligation, the person in whose name such Obligation is recorded as the beneficial owner of such Obligation by a Participant on the records of such Participant, or such person’s subrogee.
“Cede & Co.” shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Obligations.
“DTC” shall mean The Depository Trust Company of New York, New York.
“Participant” shall mean any broker-dealer, bank or other financial institution for which DTC holds Obligations as securities depository.
“Representation Letter” shall mean the Representation Letter pursuant to which the sender agrees to comply with DTC’s Operational Arrangements.
(b) The Obligations shall be initially issued as separately authenticated fully registered obligations, and one Obligation shall be issued in the principal amount of each stated maturity of the Obligations. Upon initial issuance, the ownership of such Obligations shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the Issuer may treat DTC (or its nominee) as the sole and exclusive owner of the Obligations registered in its name for the purposes of payment of the principal of or interest on the Obligations, selecting the Obligations or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Obligations under this resolution, registering the transfer of Obligations, and for all other purposes whatsoever; and neither the Registrar nor the Issuer shall be affected by any notice to the contrary. Neither the Registrar nor the Issuer shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Obligations under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Obligations, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Obligations, with respect to any notice which is permitted or required to be given to owners of Obligations under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Obligations, or with respect to any consent given or other action taken by DTC as registered owner of the Obligations. So long as any Obligation is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Obligation, and shall give all notices with respect to such Obligation, only to Cede & Co. in accordance with DTC’s Operational Arrangements, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer’s obligations with respect to the principal of and interest on the Obligations to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Obligation for each
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separate stated maturity evidencing the obligation of the Issuer to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Obligations will be transferable to such new nominee in accordance with paragraph (e) hereof.
(c) In the event the Issuer determines that it is in the best interest of the Beneficial Owners that they be able to obtain Obligations in the form of bond certificates, the Issuer may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Obligations in the form of certificates. In such event, the Obligations will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Obligations at any time by giving notice to the Issuer and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Obligations will be transferable in accordance with paragraph (e) hereof.
(d) The execution and delivery of the Representation Letter to DTC, if not previously filed with DTC, by the Chair or County Auditor-Treasurer is hereby authorized and directed.
(e) In the event that any transfer or exchange of Obligations is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Obligations to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Obligations in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Obligations, or another securities depository as owner of all the Obligations, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Obligations in the form of bond certificates and the method of payment of principal of and interest on such Obligations in the form of bond certificates.
2.09. Form of Obligations. The Obligations shall be prepared in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WASECA
GENERAL OBLIGATION CAPITAL NOTES, SERIES 2013A
Interest Rate Maturity Date Date of Original Issue CUSIP No.
% February 1, 20 September , 2013
REGISTERED OWNER: CEDE & CO. PRINCIPAL
AMOUNT: THOUSAND DOLLARS
WASECA COUNTY, MINNESOTA (the Issuer), acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner specified above, or registered assigns, the principal sum specified above on the maturity date specified above, with interest thereon from the date of original issue specified above or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, at the annual rate specified above, payable on February 1 and August 1 in each year, commencing August 1, 2014 (each such date, an Interest
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Payment Date), to the person in whose name this Obligation is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Obligation prior to its stated maturity. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft or other agreed means of payment by Bond Trust Services Corporation, in Roseville, Minnesota, as Registrar and Paying Agent (the Registrar), or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith, credit and taxing powers of the Issuer have been and are hereby irrevocably pledged.
This Obligation is one of an issue in the aggregate principal amount of $2,145,000 issued pursuant to a resolution adopted by the Board of County Commissioners on August 20, 2013 (the Resolution), to finance the costs of acquisition of capital equipment, and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 373.01, subdivision 3 and Chapter 475. The Obligations are issuable only in fully registered form, in denominations of $5,000 or any integral multiple thereof, of single maturities.
As provided in the Resolution and subject to certain limitations set forth therein, this Obligation is transferable upon the books of the Issuer at the principal office of the Registrar, by the registered owner hereof in person or by the owner’s attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner’s attorney, and may also be surrendered in exchange for Obligations of other authorized denominations. Upon such transfer or exchange the Issuer will cause a new Obligation or Obligations to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange.
Obligations maturing in 2022 and later years are each subject to redemption and prepayment at the option of the Issuer, in whole or in part, in such order as the Issuer shall determine and, within a maturity, by lot as selected by the Registrar in multiples of $5,000, on February 1, 2021, and on any date thereafter, at a price equal to the principal amount thereof plus interest accrued to the date of redemption, without premium. The Issuer will cause notice of the call for redemption to be published as required by law and, at least thirty (30) days prior to the designated redemption date, will cause notice of the call thereof to be mailed by first class mail to the registered owner of any Obligation to be redeemed at the owner's address as it appears on the bond register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Obligation not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Obligations or portions of Obligations so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Issuer shall default in the payment of the redemption price) such Obligations or portions of Obligations shall cease to bear interest. Upon partial redemption of any Obligation, a new Obligation or Obligations will be delivered to the registered owner without charge, representing the remaining principal amount outstanding.
The Obligations have been designated as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
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The Issuer and the Registrar may deem and treat the person in whose name this Obligation is registered as the absolute owner hereof, whether this Obligation is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the Issuer nor the Registrar shall be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Obligation in order to make it a valid and binding general obligation of the Issuer in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that, prior to the issuance hereof, the Board of County Commissioners has levied ad valorem taxes on all taxable property in the Issuer, which taxes will be collectible for the years and in amounts sufficient to produce sums not less than five percent in excess of the principal of and interest on the Obligations when due, and has appropriated such taxes to its General Obligation Capital Notes, Series 2013A Sinking Fund for the payment of such principal and interest; that if necessary for payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the Issuer, without limitation as to rate or amount; that the issuance of this Obligation, together with all other indebtedness of the Issuer outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Issuer to exceed any constitutional or statutory limitation of indebtedness. This Obligation shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, Waseca County, Minnesota, by its Board of County Commissioners, has caused this Obligation to be executed on its behalf by the facsimile signatures of the Chair and County Auditor-Treasurer and has caused this Obligation to be dated as of the date set forth below.
Date of Authentication:
WASECA COUNTY, MINNESOTA
(facsimile signature – County Auditor-Treasurer) (facsimile signature - Chair)
CERTIFICATE OF AUTHENTICATION
This is one of the Obligations delivered pursuant to the Resolution mentioned within.
BOND TRUST SERVICES CORPORATION, as Registrar
By
Authorized Representative
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The following abbreviations, when used in the inscription on the face of this Obligation, shall be construed as though they were written out in full according to the applicable laws or regulations:
TEN COM - as tenants in common UTMA ...... as Custodian for .……...... (Cust) (Minor) TEN ENT - as tenants by the entireties under Uniform Transfers to Minors Act ..……... (State) JT TEN -- as joint tenants with right of survivorship and not as tenants in common
Additional abbreviations may also be used.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto the within Obligation and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Obligation on the books kept for registration of the within Obligation, with full power of substitution in the premises.
Dated: NOTICE: The assignor’s signature to this assignment must correspond with the name as it appears upon the face of the within Obligation in every particular, without alteration or enlargement or any change whatsoever.
Signature Guaranteed:
Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other “signature guaranty program” as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE:
[end of bond form]
Section 3. General Obligation Capital Notes, Series 2013A Sinking Fund. So long as any of the Obligations are outstanding and any principal of or interest thereon unpaid, the County Auditor- Treasurer shall maintain a separate debt service fund on the official books and records of the Issuer to be known as the General Obligation Capital Notes, Series 2013A Sinking Fund (the Sinking Fund), and the principal of and interest on the Obligations shall be payable from the Sinking Fund. The Issuer irrevocably appropriates to the Sinking Fund (a) the amount of $2,200,895,58 received from the Purchaser (including amounts representing capitalized interest); (b) all taxes levied and collected in accordance with this Resolution; and (c) all other moneys as shall be appropriated by the Board to the Sinking Fund from time to time. If the balance in the Sinking Fund is at any time insufficient to pay all interest and principal then due on all Obligations payable therefrom, the payment shall be made from any fund of the Issuer which is available for that purpose, subject to reimbursement from the Sinking
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Fund when the balance therein is sufficient, and the Board covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation.
Section 4. Pledge of Taxing Powers. For the prompt and full payment of the principal of and interest on the Obligations as such payments respectively become due, the full faith, credit and unlimited taxing powers of the Issuer shall be and are hereby irrevocably pledged. In order to produce aggregate amounts not less than 5% in excess of the amount needed to meet when due the principal and interest payments on the Obligations, ad valorem taxes are hereby levied on all taxable property in the Issuer. The taxes are to be levied and collected in the following years and amounts:
Levy Years Collection Years Amount
See attached Levy Computation
The taxes shall be irrepealable as long as any of the Obligations are outstanding and unpaid, provided that the Issuer reserves the right and power to reduce the tax levies in accordance with the provisions of Minnesota Statutes, Section 475.61.
Section 5. Defeasance. When all of the Obligations have been discharged as provided in this section, all pledges, covenants and other rights granted by this Resolution to the registered owners of the Obligations shall cease. The Issuer may discharge its obligations with respect to any Obligations which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Obligation should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The Issuer may also discharge its obligations with respect to any prepayable Obligations called for redemption on any date when they are prepayable according to their terms by depositing with the Registrar on or before that date an amount equal to the principal and interest which are then due, provided that notice of such redemption has been duly given as provided herein. The Issuer may also at any time discharge its obligations with respect to any Obligations, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank or trust company qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder’s option on such dates as shall be required, without reinvestment, to pay all principal, interest and redemption premiums to become due thereon to maturity or earlier designated redemption date, provided, however, that if such deposit is made more than ninety days before the maturity date or specified redemption date of the Obligations to be discharged, the Issuer shall have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Obligations from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal of and interest on the Obligations to be discharged on and before their maturity dates or earlier designated redemption date.
Section 6. Certification of Proceedings.
6.01. Registration of Obligations and Levy of Taxes. The County Auditor-Treasurer is hereby authorized and directed to file a certified copy of this resolution with the County Auditor- Treasurer and obtain a certificate that the Obligations have been duly entered upon the Auditor- Treasurer’s bond register and the tax required by law has been levied.
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6.02. Authentication of Transcript. The officers of the Issuer including the County Auditor- Treasurer are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the Obligations and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Obligations, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the Issuer as to the correctness of all statements contained therein.
6.03. Preliminary Official Statement. The Preliminary Official Statement relating to the Obligations, dated August 8, 2013, prepared and delivered on behalf of the Issuer by Ehlers & Associates, Inc., is hereby approved. Ehlers & Associates, Inc. is hereby authorized on behalf of the Issuer to prepare and distribute to the Purchaser within seven business days from the date hereof, a supplement to the Preliminary Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Obligations required to be included in the Preliminary Official Statement by Rule l5c2-12 adopted by the Securities and Exchange Commission (the SEC) under the Securities Exchange Act of 1934. The officers of the Issuer are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Preliminary Official Statement.
6.04. Authorization of Payment of Certain Costs of Issuance of the Obligations. The Issuer authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to KleinBank on the closing date for further distribution as directed by the Issuer’s financial advisor, Ehlers & Associates, Inc.
Section 7. Tax Covenants; Arbitrage Matters; Reimbursement and Continuing Disclosure.
7.01. General Tax Covenant. The Issuer covenants and agrees with the registered owners from time to time of the Obligations that it will not take, or permit to be taken by any of its officers, employees or agents, any actions that would cause interest on the Obligations to become includable in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable Treasury Regulations (the Regulations), and covenants to take any and all actions within its powers to ensure that the interest on the Obligations will not become includable in gross income of the recipient under the Code and the Regulations. In particular, the Issuer covenants and agrees that all proceeds of the Obligations will be expended solely for the payment of the costs of acquisition and installation of capital equipment to be owned and maintained by the Issuer and used in the Issuer’s general governmental operations. The Issuer shall not enter into any lease, use or other agreement with any non-governmental person relating to the use of the equipment or security for the payment of the Obligations which might cause the Obligations to be considered “private activity bonds” or “private loan bonds” pursuant to Section 141 of the Code.
7.02. Certification. The Chair and County Auditor-Treasurer being the officers of the Issuer charged with the responsibility for issuing the Obligations pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code and Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Obligations which make it reasonable to expect that the proceeds of the Obligations will not be used in a manner that would cause the Obligations to be “arbitrage bonds” within the meaning of the Code and Regulations.
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7.03. Arbitrage Rebate Exemption. (a) It is hereby found that the Issuer has general taxing powers, that no Obligation is a “private activity bond” within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Obligations are to be used for local governmental activities of the Issuer, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the Issuer and all subordinate entities thereof during the year 2013 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to Section 148(f)(4)(D) of the Code, the Issuer shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code.
(b) Notwithstanding the provisions of paragraph (a) of this Section 7.03, if the arbitrage rebate provisions of Section 148(f) of the Code apply to the Obligations, the Issuer hereby covenants and agrees to make the determinations, retain records, and rebate to the United States the amounts at the times and in the manner required by said Sections 148(f) and applicable Regulations.
7.04. Reimbursement. The Issuer certifies that the proceeds of the Obligations will not be used by the Issuer to reimburse itself for any expenditure with respect to the equipment which the Issuer paid or will have paid more than 60 days prior to the issuance of the Obligations unless, with respect to such prior expenditures, the Issuer shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations; provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the equipment meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to “preliminary expenditures” for the equipment as defined in Section 1.150-2(f)(2) of the Regulations which in the aggregate do not exceed 20% of the “issue price” of the Obligations.
7.05. Qualified Tax-Exempt Obligations. The Board hereby designates the Obligations as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of tax-exempt obligations which are not private activity bonds (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for the purpose of this representation) and are not excluded from this calculation by Section 265(b)(3)(C)(ii) of the Code which will be issued by the Issuer and all subordinate entities during calendar year 2013 does not exceed $10,000,000.
7.06. Continuing Disclosure. (a) Limited Exemption from Rule. The Securities and Exchange Commission (the “SEC”) has promulgated amendments to Rule 15c2-12 under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12) (as in effect and interpreted from time to time, the “Rule”) which govern the obligations of certain underwriters to require that issuers of municipal obligations enter into contracts for the benefit of the holders of the obligations to provide continuing disclosure with respect to the obligations. The Board hereby finds, determines and declares that the Obligations are exempt from the application of paragraph (b)(5) of the Rule by reason of the exemption granted in paragraph (d)(2) thereof. Specifically, the Board hereby finds that the only “obligated person” (within the meaning of the Rule) with respect to the Obligations is the Issuer and that, giving effect to the issuance of the Obligations and any other securities required to be integrated with the Obligations, there will be no more than $10 million in principal amount of municipal securities outstanding on the date of issuance of the Obligations as to which the Issuer is an obligated person (excluding municipal securities exempt from the Rule under paragraph (d)(1) thereof because, among other things, they were issued in minimum denominations of $100,000). In making such finding, the Issuer hereby represents that it has not issued within the six months before the date of issuance of the Obligations and that it reasonably expects that it will not issue within six months after the date of issuance of the Obligations, other securities of the Issuer of substantially the same security and providing financing for the same general purpose or purposes as the Obligations. The exemption from
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the Rule for the Obligations is conditioned upon the Issuer agreeing to provide certain continuing disclosure as hereinafter provided. The Issuer has complied in all material respects with any undertaking previously entered into by it under the Rule.
(b) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Obligations and the security therefor and to permit participating underwriters in the primary offering of the Obligations to comply with paragraph (b)(5) of the Rule, which will enhance the marketability of the Obligations, the Issuer hereby makes the covenants and agreements contained in this section for the benefit of the Owners (as hereinafter defined) from time to time of the outstanding Obligations. If the Issuer fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any outstanding Obligations, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for specific performance or a writ of mandamus. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Obligations or under any other provision of this resolution. As used in this section, “Owner” means, in respect of an Obligation, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any “Beneficial Owner” (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, “Beneficial Owner” means, in respect of an Obligation, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Obligation (including persons or entities holding Obligations through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the Obligation for federal income tax purposes.
(c) Information To Be Disclosed. The Issuer will provide, in the manner set forth below, either directly or indirectly through an agent designated by the Issuer, the following information at the following times:
(1) on or before twelve (12) months after the end of each fiscal year of the Issuer, commencing with the fiscal year ending December 31, 2013 to the Municipal Securities Rulemaking Board (the MSRB) through its Electronic Municipal Market Access System (EMMA), in an electronic format as prescribed by the MSRB, the information in the Issuer’s audited financial statements, which shall be for the most recent fiscal year of the Issuer, and the other financial information and operating data, if any, that is customarily prepared by the Issuer and publicly available under applicable data privacy or other laws (the Disclosure Information).
Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to the MSRB through EMMA or to the SEC. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The Issuer shall clearly identify in the Disclosure Information each document so incorporated by reference. If the Disclosure Information is changed because it is no longer compiled or publicly available or this paragraph (c)(1) is amended as permitted by subsection (d), then the Issuer shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of information provided.
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(2) In a timely manner, not in excess of 10 business days, to the MSRB through EMMA, notice of the occurrence of any of the following events (each a Material Fact):
(A) principal and interest payment delinquencies; (B) non-payment related defaults, if material; (C) unscheduled draws on debt service reserves reflecting financial difficulties; (D) unscheduled draws on credit enhancements reflecting financial difficulties; (E) substitution of credit or liquidity providers, or their failure to perform; (F) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the security or other material events affecting the tax status of the Obligations; (G) modifications to rights of holders of the Obligations, if material; (H) bond calls, if material, and tender offers; (I) defeasances; (J) release, substitution or sale of property securing repayment of the Obligations, if material; (K) rating changes; (L) bankruptcy, insolvency, receivership, or similar event of the obligated person; (M) the consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (N) appointment of a successor or additional trustee or the change of name of a trustee, if material.
For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person.
As used herein, for those events that must be reported if material, an event is “material” if it is an event as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell an Obligation or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, an event is also “material” if it is an event that would be deemed material for purposes of the purchase, holding or sale of an Obligation within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. (3) In a timely manner, to the MSRB through EMMA, notice of the occurrence of any of the following events or conditions:
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(A) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement; and (B) the termination of the obligations of the Issuer under this section pursuant to subsection (d); (C) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (D) any change in the fiscal year of the Issuer.
(d) Identifying Information to Accompany Documents. All documents provided to the MSRB shall be accompanied by identifying information as prescribed by the MSRB.
(e) Term; Amendments; Interpretation. The covenants of the Issuer in this section shall remain in effect so long as any Obligations are outstanding. Notwithstanding the preceding sentence, however, the obligations of the Issuer under this section shall terminate and be without further effect as of any date on which the Issuer delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the Issuer to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Obligations to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. This section may be amended or supplemented by the Issuer from time to time, without notice to or the consent of the Owners of any Obligations, by a resolution of the Board filed in the office of the recording officer of the Issuer accompanied by an opinion of Bond Counsel, who may rely on Obligations of the Issuer and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the Issuer or the type of operations conducted by the Issuer, or (b) is required by, or better complies with, the provisions of paragraph (d)(2) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (d)(2) of the Rule at the time of the primary offering of the Obligations, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Owners under the Rule. This section is entered into to comply with, and should be construed so as to satisfy the requirements of, paragraph (d)(2) of the Rule.
Attachment:
TAX LEVY CALCULATION
Waseca County, Minnesota $2,145,000 General Obligation Capital Notes, Series 2013A
Dated Date: 9/12/2013
Tax Tax Bond Levy Collect Pay Total P & I Net Year Year Year P & I x 105% Levy
2013 / 2014 / 2015 86,164.13 90,472.34 90,472.34 2014 / 2015 / 2016 302,162.50 317,270.63 317,270.63 2015 / 2016 / 2017 304,962.50 320,210.63 320,210.63
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2016 / 2017 / 2018 302,462.50 317,585.63 317,585.63 2017 / 2018 / 2019 304,812.50 320,053.13 320,053.13 2018 / 2019 / 2020 301,862.50 316,955.63 316,955.63 2019 / 2020 / 2021 303,762.50 318,950.63 318,950.63 2020 / 2021 / 2022 305,362.50 320,630.63 320,630.63 2021 / 2022 / 2023 303,112.50 318,268.13 318,268.13
Totals 2,514,664.13 2,640,397.34 2,640,397.34
Upon vote being taken thereon the following voted in favor thereof: Kuhns, Nelson, Peterson Hintz, Androli.
And the following voted against the same: None
Whereupon the resolution was declared duly passed and adopted.
County Administrator, Laura Elvebak, shared correspondence requesting appointments to the Board of SouthCentral Minnesota Multi-County HRA. Hintz moved and Nelson seconded to reappoint Richard Androli and Alvin Grams to the Board. Motion carried unanimously.
Hintz moved and Androli seconded to adjourn at 11:45 a.m. Motion carried unanimously.
______Daniel D. Kuhns, Chairperson Waseca County Board of Commissioners
ATTEST:
______Tammy Wynkoop, Clerk Waseca County Chief Deputy Auditor/Treasurer
The following bills were audited and allowed:
A.H. HERMEL COMPANY INC 89.03 ADVANCED DRAINAGE SYSTEMS INC 244.08 AG POWER ENTERPRISES INC 124.35 ALCOHOL MONITORING SYSTEMS INC 2,485.70 ANCOM COMMUNICATIONS INC 76.42 ARAMARK 186.76 ASSOCIATED LUMBER MART 365.09 ASSOCIATED PSYCHOLOGICAL SERVICES 438.00 AUTO VALUE WASECA INC 259.03 BAKER TILLY VIRCHOW KRAUSE LLP 6,289.82
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BEAR GRAPHICS INC 228.92 BLACK HILLS AMMUNITION INC 494.00 BOCKS SERVICE INC 357.56 BORN/RODNEY 67.83 CARQUEST AUTO PARTS 442.09 CHARLIES HARDWARE INC 534.28 CHRISTENSEN TIRE & AUTO REPAIR 1,588.59 CHRISTIANSON/CHRIS 186.42 COLE ELECTRIC INC 155.62 CONDON FARM SERVICE 93.35 CONNOR/KATHLEEN A 6.78 CONNORS PLUMBING & HTG INC 56.83 CONTINENTAL RESEARCH CORP 41.94 COPIER BUSINESS SOLUTIONS INC 45.91 CRYSTEEL DISTRIBUTING INC 225.38 CULLIGAN 52.88 DELL MARKETING L.P. 2,289.18 DEML FORD INC 1,006.73 ELVEBAK/LAURA 84.19 EMERGENCY AUTO TECH, INC 57.25 ENVIRONMENTAL SYSTEMS RESEARCH 5,077.23 ERICKSON ENGINEERING 6,647.50 EXPRESS CARE INC 102.62 FASTENAL CO 72.79 FIRST NATIONAL BANK 3603 832.24 FIRST NATIONAL BANK 3975 281.06 FIRST NATIONAL BANK OMAHA 7265 51.11 FIRST NATIONAL BANK OMAHA 380.00 FIRST NATIONAL BANK OMAHA 4572 108.19 FIRST NATIONAL BANK OMAHA 4663 1,030.00 FIRST NATIONAL BANK OMAHA 4986 239.30 FIRST NATIONAL BANK OMAHA 5348 228.85 FIRST NATIONAL BANK OMAHA 5462 995.23 FIRST NATIONAL BANK OMAHA 5595 61.83 FIRST NATIONAL BANK OMAHA 6072 81.97 FIRST NATIONAL BANK OMAHA 6270 125.00 FIRST NATIONAL BANK OMAHA 6908 157.08 FIRST NATIONAL BANK OMAHA 6957 78.37 FIRST NATIONAL BANK OMAHA 8264 1,124.28 FREE PRESS/THE 581.42 G&K SERVICES INC 145.25 GEOCOMM INC 8,041.25 GODFATHER'S EXTERMINATING INC 187.03 H&A ADMINISTRATORS 544.00 HARTMAN/DANIELLE 21.81 HEALTHY SMILES INC 420.00
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HOFMEISTER/JANE T 154.00 HOTSY EQUIPMENT COMPANY 137.87 HUCKLE MEDIA, LLC 1,399.82 IFACS 97.49 JACOBSON/RHONDA 7.91 JOHN'S SERVICE GARAGE 1,136.12 KIEPER/SHARI 644.00 KINNIRY/SANDY 105.00 KMTELECOM 3.90 L & L STREET ROD & SPORTS TRUCK 4,990.00 LESUEUR CO TREASURER 23,989.91 M-R SIGN COMPANY INC 57.59 MAG'S GARAGE DOOR REPAIR 80.00 MATHESON TRI-GAS INC. 37.51 MCRAITH FUNERAL HOMES CREMATORIUM 190.00 MEDIACOM-NEW YORK 1,200.00 MEDTOX LABORATORIES 102.24 MIDSTATES EQUIPMENT AND SUPPLY 471.85 MILBRATH/BRAD 41.26 MINNESOTA ELEVATOR INC 239.90 MN DEPT OF CORRECTIONS STS 14,538.94 MN DEPT OF TRANSPORTATION 3,053.17 MN OFFICE OF ENTERPRISE TECHNOLOGY 1,300.00 MN RIVER AREA AGENCY ON AGING INC 355.41 MN SHERIFFS ASSOC 520.00 NAPA AUTO & TRUCK PARTS OF WASECA 728.65 NORCHEM DRUG TESTING LAB INC 316.75 NORTHLAND CHEMICAL CORP 347.53 NRHEG STAR EAGLE INC 314.75 OVERHEAD DOOR CO OF MANKATO INC 73.00 PAAPE DISTRIBUTING CO INC 450.00 PANTHEON COMPUTER SYSTEMS INC 37.30 PENA/JENNIFER 199.00 PERSONALIZED PRINTING OF WASECA INC 112.20 PICTOMETRY INTERNATIONAL CORP 37,686.01 POSSIN/RICHARD 81.39 POWERPLAN INC 79.52 PREMIER VETERINARY CENTER LLC 556.02 PROBUILD-WASECA 74.37 RATHMANN/DUANE 66.13 REBECCA BALDWIN RAND 80.00 RED FEATHER PAPER CO INC 1,488.93 RINKE-NOONAN ATTORNEYS AT LAW 1,270.00 RIVER BEND BUSINESS PRODUCTS 351.61 SHOP LLC/THE 416.65 SIGN PRO-OWATONNA 50.00
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SMITHS MILL IMPLEMENT INC 2,288.19 SOUTHSIDE MARINE INC 171.00 SPECIALTY PERSONNEL SERVICES INC 1,949.28 STEELE CO DETENTION CENTER 8,363.17 STEELE COUNTY LANDFILL 7,124.80 STREICHERS 1,210.00 SYVERSON FORD TRUCK INC/DAVE 3,122.34 TESCH SERVICE CENTER INC 80.16 TEXAS REFINERY CORP 206.27 THORNHILL/LARRY 106.88 TIRE ASSOCIATES 921.80 TRADES OFFICE PRODUCTS 1,169.32 TWO-WAY RADIO OF MINN INC 45.69 US AUTO FORCE 504.76 US BANK-ST PAUL 425.00 VETERANS INFORMATION SERVICE 50.00 VOGEL PAINT & WAX 87.60 WASECA AREA SENIOR CITIZENS INC 9,084.80 WASTE MANAGEMENT-CAROL STREAM 19,504.53 WASTEQUIP 15,800.00 WENISCH/VIRGINIA 37.23 WEST GROUP PAYMENT CTR 570.70 WESTERN PETROLEUM COMPANY 3,078.47 ZAHL EQUIPMENT SERVICE INC 672.82 ZIEGLER INC 3,507.36
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WASECA COUNTY BOARD OF COMMISSIONERS— BUDGET WORK SESSION TUESDAY, AUGUST 20, 2013
The Waseca County Board of Commissioners met in a budget work session on Tuesday, August 20, 2013. The meeting was held in the East Annex Meeting Room, 300 N State St., Waseca, Minnesota. Members present were Chairperson Daniel D. Kuhns, Richard Androli, Jim Peterson and Mike Hintz. Blair Nelson was absent
The meeting was called to order by Chair Kuhns at 9:00 a.m.
Others present were Laura Elvebak, County Administrator; Tammy Wynkoop, Chief Deputy Auditor-Treasurer; Intern Samantha Barthels; Loren Christiansen, Waseca County Fair Board Member; Pat Beckman, Waseca Arts Council; Beth Kallestad, Cannon River Watershed Partnership.
Loren Christiansen, Fair Board Member, gave an overview of this year’s Waseca County Fair events and requested that the proposed 2014 budget for the Ag Society remain the same as the 2013 appropriation.
Pat Beckman, Waseca Arts Council, updated the Board on upcoming events. Ms. Beckman requested $12,500 in appropriations for the Arts Council 2014 Budget.
Beth Kallestad, Executive Director of Cannon River Watershed Partnership requested $1,000 in appropriations for the 2014 Budget.
The Budget Session concluded at 9:23 a.m.
______Daniel D. Kuhns, Chairperson Waseca County Board of Commissioners
ATTEST:
______Tammy Wynkoop, Clerk Waseca County Chief Deputy Auditor/Treasurer
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WASECA COUNTY BOARD OF COMMISSIONERS— PUBLIC HEARING Tuesday, August 20, 2013
The Waseca County Board of Commissioners met for a Public Hearing on Tuesday, August 20, 2013. The meeting was held in the East Annex Meeting Room, 300 N State St., Waseca, Minnesota. Members present were Chairperson Daniel D. Kuhns, Richard Androli, Jim Peterson, Blair Nelson and Mike Hintz.
Others present were Laura Elvebak, County Administrator; Tammy Wynkoop, Chief Deputy Auditor-Treasurer; Intern Samantha Barthels; Nathan Richman, County Engineer; Sheriff Brad Milbrath; Attorney Justin Weinberg (Gislason & Hunter); Miles Trump, Waseca County News Reporter; Carl Guse; Larry Tilney; Bernard Frederick; Herb Guse; Walter C. Fowler; Serfin Torres; Barbara Kiesler; Kal Kiesler; Russ Wiebold; Bryan Wilcox; Cliff Blaisdell; Margaruite K. Schendel; Gerald E. Schendel; Carol Gahler; Wilbert Gahler; Bruce Zimmerman; Ted McDaniel; Russell Weir; Gary Deml; Vern Benson; Clinton Rogers; Merlen Gekeler; Trent Wadd; Ron Wynkoop; Deb Barbknecht; DuWayne Hoehn; Rodney Born; Greg Dodson; Teresa Busse; Sue Baldini; Joyce Bauman; Fred Bauman; Dale DeRaad; Roger Kienholz; Mike Parry; Craig Youngberg; Mark DuChene; Michel Sorenson; Roy B. Srp; Sharon Dodson; Anita Benson; Chuck Brenner; Michael Hecht; Dean Reder; Mike Santo; Jeanette Byron; Jill Thursdale; Randy Zimmerman; Betty McIntire; Steve Kiesler; Bruce Boyce; Bonnie Lou Zimmerman; Steve Melcher; Liz Melcher; Paul Zimmerman; Fred Eichorst; Jane Christian; Karen Pettigrew; Mark Worke; Jody Weimert; Megan Hoffman; Jim Williams; Russ Guse; Mel Guse; and Tracy Smith.
Chair Kuhns called the hearing to order at 1:00 p.m. Roll call was taken and the Pledge of Allegiance was recited.
The Chair introduced Attorney Justin Weinberg, Gislason & Hunter, who is currently representing Waseca County regarding the Highway 14 turnback. Mr. Weinberg shared the history and current status regarding Old Highway 14. Currently the case is with the court of appeals. County officials have repeatedly requested of the governor’s office, legislators, and MNDOT to come back to the table to discuss funding of the repairs necessary to bring the road up to acceptable standards, with no success. The estimated cost to fix the existing road is in excess of $20,000,000. In December 2012 the State turned the road back to Waseca County and denied Waseca County access to the turnback account fund.
Vacating the Old Highway 14 is one of the options available to Waseca County. Most of Old Highway 14 originated as a trunk highway, which essentially makes the road the responsibility of the original road authority, which is the State of Minnesota. If this option is exercised, the vacation must be done within one year of the turnback. Landowners have a right to a public road or the right to damages to build a road to get to a public road. The road did not originate as a county road, therefore, the responsibility for access falls on MNDOT.
The meeting was opened to public comments.
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Roy Srp, City of Waseca Mayor, acknowledged that the Commissioners are really in uncharted water. Mayor Srp feels that it is pretty serious if people can’t get to their residences. His question to Mr. Weinberg is “Have they (MNDOT) responded at all?”
Justin Weinberg responded that yes, the state has responded and simply stated what the law says and asked him to please keep them in the loop.
Michael Hecht stated that he lives on East Elm Ave and the house has been in his family for 60 years. Mr. Hecht would like the City and County to work together to maintain the curb & gutter and sewer & water. Mr. Hecht’s question is whether MNDOT officials are appointed or elected.
Mr. Weinberg stated that MNDOT are appointed officials. Commission Zelle was recently appointed and comes from the private sector. The County has requested a meeting with Commissioner Zelle. Sewer, water, curb, and gutter have been main concerns throughout the negotiations. The sections of road located in the city limits of Waseca and Janesville would not go away in either city. Those sections did not originate as trunk highway and therefore would not go back to the state.
Gary Deml with Deml Ford asked for clarification as to whether that portion of the roadway in front of his business would be vacated or not. Citizens and businesses are very concerned.
Mr. Weinberg reiterated that that portion within the city limits cannot go away.
Dean Reder, Guardian Energy, wanted to state his concerns. Guardian Energy produces 100,000,000 gallons of ethanol per year. Shipments out are primarily by rail, but grain in by truck at the rate of approximately 160 semi loads per day. The incoming trucks use the current Old Highway 14 and would need to reroute if vacated. The area gravel roads are not sufficient for this traffic and they would have to be rerouted adding 10-15 miles to each trip in many cases. A vacation of the road would have a large detrimental effect on their business.
Bruce Boyce expressed that he has no personal opinion at this time. However, Mr. Boyce is amazed at the volume of traffic that continues through town, including 30-40 heavy trucks per day. GPS providers need to update as GPS is part of the problem. Vacating the road seems pretty extreme and Mr. Boyce questioned if there is a prospect of using weight restrictions in the city to minimize heavy traffic. He would be supportive of whatever measures it takes to minimize traffic on Old Highway 14 and still serve local traffic adequately.
Randy Zimmerman spoke regarding value of highway 14 east of Waseca to the Steele County line. Mr. Zimmerman’s family would be technically ok. It would not be convenient, but they could use alternate routes. If the road were to be vacated, it would be a burden on homeowners and landowners. Randy questioned whether negotiations for damages would be handled through the county or court system?
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Mr. Weinberg indicated that it would be through a court process. County does not assist, but it does initiate proceedings to get the matter into court.
Mr. Zimmerman said there are between 20 and 30 homes solely dependent on that stretch of highway for outside access. He asked that it not be vacated unless there is a contingency in place. Roger Kienholz with Crystal Valley Co-op expressed that a vacation of the road would have a severe impact on their business as they have no other access. A vacation would be detrimental and unacceptable. The co-op serves southern Minnesota with a variety of equipment. Some of that is off road equipment, which would be a safety concern on the new four lane highway, but they need to get to their customers. Someone needs to make a decision and Mr. Kienholz would like to know who is responsible for the decision? Crystal Valley Co-op is opposed to the stance taken by the State of Minnesota. Crystal Valley has 1500 members, 150 fulltime employees, and 90 seasonal employees. They must have access to their facility and it must be maintained to the current weight level.
Justin Weinberg responded that ultimately the decision falls on the Commission of Transportation.
Mike Perry spoke as a small business owner. Addressing the Commissioners, Mr. Perry said “You are being steamrolled and I hope you hang tough”. Mike feels that it will fall on the Governor’s shoulders. He also believes that many of our tax dollars are going to light rail. Mr. Perry’s opinion is “If the board doesn’t hang tight they will roll over us and we will pay in the end. We are little people. Somebody has to say no and now is the time.”
Paul Zimmerman, also a small business owner, conveyed that without Old Highway14, there is no way to get to his business. Mr. Zimmerman understands the convenience aspect, but wanted to express that there is also a large economic issue.
Clinton Rogers, Janesville City Administrator, distributed written comments summarizing the position of City Council, Mayor, and Administrator of the City of Janesville. The written comments are as follows:
1. As we have stated in the past, there is infrastructure above and below First Street that is in urgent need of repair / reconstruction. In fact, some of our utilities are 75- 80 years old. The more we wait on this issue, the older our aging infrastructure becomes. The City Council had planned on making these improvements a few years ago, but we continue to wait during these negotiations. 2. It is our understanding that the ‘city limit’ portions and amount of Aid is agreed to by the County and MNDOT. If this is the case, can the MNDOT and City of Janesville begin conversations on the funding levels? We realize that the City falls under the population requirement to receive annual C.S.A.H. aid, but we would like to at least discuss the funding with the MNDOT if the highway is indeed vacated. These would be very critical conversations because the City would need to certify special assessments on the properties along the street. Special assessments can sometimes become contentious with residents and property owners.
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3. By vacating any portion of the road near Janesville, we are concerned that there will be very little ‘through traffic’ in our community; which would have serious implications to our businesses. 4. We have been patiently waiting to make improvements to Veter’s park along First Street. We are waiting until any final outcomes are realized with the reconstruction of First Street. Both the Park Advisory Board and City Council have been fielding questions for about 3 or 4 years now; what should our response be to residents? 5. We strongly feel that the City of Janesville’s residents have an important stake in this issue. Based on 2010 census figures, Janesville’s population was 2,256 and the County’s was 19,136. This means that Janesville residents constitute about 12% of the County’s population. This is an issue the City Council is not taking lightly. 6. And, finally, the City Council was informed several months ago that the County was planning to invite our state legislators to the table to discuss these issues with the County and MNDOT. Was this meeting ever scheduled?
Mr. Weinberg addressed Clinton Rogers question as to whether the Legislators have been invited to table to discuss this issue. Waseca County representatives went to the Capitol on April 26th. While at the Capitol, they met with every representative that represents Waseca County and/or Steele County to express the concerns of the people of our county. Representative Cornish is trying to get MNDOT and the Governor to the table to discuss this issue, with no success to date. The legislators were all invited to today’s meeting, none are present today. Chairperson Kuhns received a call from Representative Tony Cornish yesterday expressing that he would be unable to attend, due to a prior meeting scheduled for today. MNDOT and Governor Dayton won’t return Cornish’s phone calls and won’t set up a meeting. If Waseca County citizens call their representatives, it may help. The more voices that are heard by our legislators, the better chance we have of getting a response. Representative Cornish expressed his frustration in not being successful in getting a meeting set up.
Jim Williams inquired as to the vacation procedure. Would it have to be Old Highway 14 that is vacated or could it be lesser traveled roads? Also, could the road be given to a lower form of government such as the township?
Justin Weinberg responded that it can’t be any other road, it would have to be Old Highway 14. Due the reversion, it would be the only road that qualifies for vacation. The Old Highway could not be given to the township because of population.
Mr. Williams said that Blue Earth County got a really sweet deal and wanted to know when Waseca County learned of the Blue Earth County deal.
Mr. Weinberg informed the group that Waseca County was made aware of the Blue Earth County deal toward the end of March or early April, well after our funding was denied.
Cliff Blaisdell, a member of the Janesville City Council, asked if they can’t vacate within the city limits, would the portions within the City of Janesville and City of Waseca be maintained as county roads.
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Mr. Weinberg said that it is undetermined at this time, but it could possibly be the responsibility of the city. The County Commissioners don’t get to make that decision, it is a statutory decision.
Mr. Blaisdell also questioned, in vacating back to city isn’t it a double standard that the City would get the road back in poor condition? Secondly, by vacating does this drop the liability of MNDOT?
Mr. Weinberg commented that MNDOT has already disclaimed the road. MNDOT would still be on the hook as it related to the vacation. As to the double standard, the problem is that there are bad roads everywhere.
The next question by Cliff Blaisdell is in regard to the representatives on both sides of the negotiations. Are there personality conflicts within our organizations and how does that affect the negotiations?
Mr. Weinberg responded that as professionals, we put aside any personality conflicts and differences of opinion and remember what we are doing and who are we fighting for. Both the County Board and MNDOT are fighting for each of you. MNDOT is fighting for safe and adequate roadways. To your elected officials, it is all about the citizens of Waseca County and not about themselves.
Vern Benson lives on the west side of Janesville. Mr. Benson hopes this can be resolved as it is important to everyone. He asked that it be considered to keep the road west of Janesville to interchange open, leaving opportunity for possible business expansion.
Larry Tilney inquired as to whether the commissioners have talked to fire chief and sheriff about the impact of emergency vehicles.
Mike Hintz responded to Mr. Tilney that yes, many public service agencies have been involved in the discussions regarding Old Highway 14.
Commissioner Hintz stated that all of the commissioners are very aware of the impact of vacating the road. He doesn’t believe that MNDOT wants to see the road vacated. It comes down to, do we want the State of Minnesota or Waseca County to pay the millions of dollars necessary to return the road to a satisfactory state.
Steve Kiesler has a few hundred vehicles per week use Old Highway 14 to access Kiesler’s Campground. If those vehicles had to detour through the City of Waseca, it would have a considerable impact on traffic during the summer months.
Dale DeRaad, Woodville Township Supervisor, asked by definition, does vacate mean close the road completely and barricade it off?
Justin Weinberg explained that yes, it would mean closed with barricades in place.
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Mr. DeRaad expressed that various members of Woodville Township would be willing to go to the capitol to get someone to recognize the huge impact that this has on Waseca county.
Brian Wilcox asked what happens if you don’t vacate?
Chairperson Kuhns responded that it means the Old Highway 14 would belong to Waseca with no money attached for repairing the road. We could likely still be in litigation at the time we are required to make the decision.
Justin Weinberg posed the question are you willing to take that chance? If so, then Waseca County pays.
Chairman Kuhns commented that we want MNDOT to come back to the table and shoot us a fair deal and we only have so many cards left in our hand.
Randy Zimmerman wants to know who decides what a fair deal is.
Justin Weinberg responded that it is a matter of determining the adequacy of the road. Mr. Weinberg indicated that he is not an engineer and he knows it isn’t adequate.
Commissioner Jim Peterson commented that we are not asking for a lot of money. We are just asking for adequate funds to fix the road.
Commissioner Blair Nelson commented that staffing changes at MNDOT has changed the way they negotiate.
Megan Hoffman expressed concern that she lives on Old Hwy 14 and the backside of her property is Goose Lake. Ms. Hoffman has small children and there is no other access to their property.
Randy Zimmerman questioned if MNDOT really wants 200-300 people to sue them for access to their property.
Mr. Weinberg responded that up until a month or a month and a half ago, MNDOT believed the road wasn’t originally a trunk highway. Now they know. After they were made aware, the response from MNDOT was keep them in the loop and that is it. They have been under the mistaken belief that it wasn’t originally a trunk highway and therefore wouldn’t be their responsibility.
Craig Youngberg has two accesses to his property, both use Old Highway 14. Mr. Youngberg also stated that he works for the fire department and this issue has been discussed. Another large concern for the residents along Old Highway 14 is insurance companies and mortgage lenders factor in accessibility and response time in case of an emergency. If the road is vacated and blockaded it could cause cancellation of insurance policies and or inability to finance homes.
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The question was posed about the potential benefit of contacting the media, such as local and twin cities television stations to get the attention of legislators.
Justin Weinberg said that we do not want to litigate through the media. He believes that the legislators will listen to their constituents. They have hinted that they may go back to negotiating table. When their constituency gets involved, they will listen.
Commissioner Mike Hintz expressed his thanks to everyone for coming, for contacting their commissioners and for voicing their opinions. He heard loud and clear that it is the desire of the people that the Commissioners stay strong and stay firm. The Waseca County Commissioners value the people and businesses of Waseca County.
Clinton Rogers asked what is next, what can we do to help?
Mr. Weinberg responded to do exactly what you said you are going to do, contact your elected representatives, the Commissioner of Transportation, and the Governor directly.
Mike Hintz encouraged people to write to or call the County Administrator as well. That would give Laura Elvebak an opportunity to put a file together so that everyone that is interested could be notified if an opportunity arises to make a statement as a group, such as taking a group to the Capitol.
Mike Parry shared Governor Mark Dayton’s cell phone number (612-770-8978). Mr. Dayton does answer this number. Ask him to come to the table for discussions. Ask him why we are being treated differently than people in the Rochester area or in Blue Earth County.
Michael Hecht feels it would be beneficial to write to Minneapolis paper. We need to make a statement that we are part of the state of Minnesota and we will not be ignored.
Cliff Blaisdell asked the status with Steele County and whether they are planning to vacate their portion of Old Highway 14.
Mr. Weinberg indicated that he is not able to get into too many specifics here due to the pending litigation, but that Steele County is in a different situation.
The public hearing ended at 2:40 p.m. with the Board Chair assuring the residents that “We are trying to do our best for you”.
Comments were received before the meeting from the following:
Michael H. Kennedy, Attorney for City of Waseca and City of Janesville; Gary Deml, Deml Ford; Jessica Karels; Mrs. Fred Bauman; Patricia Pearson; David Galm; Steve Conway; Mike Wussow; Naomi Schaetzke; Wilber Gahler; Mike Wussow; Andy Zimmerman; Rebecca Linde; and Lynn Carlson.
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A summary and copies of written comments were shared with the Board Members and the press before the public hearing and are available for public inspection at the Waseca County Highway Department during regular business hours.
S/______Daniel D. Kuhns, Chairperson Waseca County Board of Commissioners
ATTEST:
S/ ______Tammy Wynkoop, Clerk Waseca County Chief Deputy Auditor/Treasurer
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